Cracking the code of selling non-air travel products Webinar 23 January 2014
Cracking the code on sales of non-air travel products
Oct 30, 2014
Personalised merchandising begins the moment a potential customer enters the airline website...
In this FREE webinar produced by Tnooz and GoQuo, our subject experts will explore the kind of expertise, sales process, technology and business model needed for successful merchandising of both air and non-air products.
Panelists for the webinar are:
Joep Laumans, VP Solutions, GoQuo
Lawrence Chai, VP Commercial Systems, Malaysia Airlines,
Manu Menon, managing director for Malaysia, Upfront Media
Kevin May, editor and moderator, Tnooz
Gene Quinn, CEO and producer , Tnooz
This webinar took place on Thursday 23 January 2014.
In this FREE webinar produced by Tnooz and GoQuo, our subject experts will explore the kind of expertise, sales process, technology and business model needed for successful merchandising of both air and non-air products.
Panelists for the webinar are:
Joep Laumans, VP Solutions, GoQuo
Lawrence Chai, VP Commercial Systems, Malaysia Airlines,
Manu Menon, managing director for Malaysia, Upfront Media
Kevin May, editor and moderator, Tnooz
Gene Quinn, CEO and producer , Tnooz
This webinar took place on Thursday 23 January 2014.
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Transcript
Cracking the code of selling non-air travel
products
Webinar23 January 2014
Your hosts
Kevin MayEditor & moderator
Gene QuinnCEO & producer
Karthick PrabuGM, Asia Pacific
Your panelists
Joep LaumansVP, Solutions GoQuo
Lawrence ChaiVP, Commercial SystemsMalaysia Airlines.
Manu MenonMD, MalaysiaUpfront Media
Poll no. 1
1
Cracking the Code of Selling Non-Air Products
The 5 Key Areas
Technology Platform Supply strategy Integration with Call Centre Fulfilment E-Retail knowledge and
experience
Private and Confidential
6
And they go hand in hand!!
Technology Platform
Ideally integrate into main flight booking flow Cross-sell to customers booking flights
Personalization by applying business rules Use IP lookup, search parameters etc.
Use historic search and/or booking data
Integration with loyalty program
Follow up after booking has been made
Use actionable intelligence
Private and Confidential
7
Example of Use of Actionable Intelligence
1. User in Singapore, has never visited the airline website before
2. Home page of airline website displays ads for Holliday Breaks in Phuket, Thailand
3. User performs a flight search for a return flight to Macau
4. The airline website now displays ads with breaks in Macau even when the user goes back to the home screen
Private and Confidential
8
Supply Strategy
Depending on your brand LCC may require different sources in comparison to
a flag carrier
Use a combination of suppliers Cover different geographic regions
Use own contracted inventory in key destinations Better control of product
Reservations will be seen to come from you!
Better margins!
Personalise and apply business rules to tailor the product offering to the customer
Private and Confidential
9
An Example
User on website looks for accommodation for 2 nights arriving on Friday for 2 people and flying business class to Macau
Assumptions: It’s likely leisure
Want to spend some money
Offer 5-star hotels with chauffeur-driven transfer as the first option
Private and Confidential
10
Call Centre Support
Have support and access to CRM in your call centre to assist customers Modify existing bookings
Re-pricing when adding or removing days
Flight disruption handling
Follow up on reservations with a pending status
Ability to also deal with customer relating to non-air issues
Pro-active approach to potential customers who have not completed their booking
Private and Confidential
11
An Example
Customer was on website and filled in booking form but never finalised payment
Reservation data exists
The contact centre now contacts the customer to establish reason why payment was not finalised and assists customer to complete booking
Benefit for the airline is potentially increased revenue, customer loyalty and that they will be seen as caring
Private and Confidential
12
Fulfilment
Issuing e-tickets
Providing e-vouchers for the non air products
Financial settlement with multiple suppliers
Who will be the merchant on record?
Create cross-sell opportunities
Private and Confidential
13
An Example
Customer receives e-ticket and voucher for hotel for a 2-day trip to Macau
Still opportunity to cross-sell other products
Issue one- off promo code to be used by customer to buy special access to a show or casino
Private and Confidential
14
e-Retailing
Apply best practice for your specific market
Use extensive analysis to better understand customer behaviour Personalise the product offering
Pick-up on local trends
What sells today might not sell tomorrow
Update inventory based on sales trends, demand and production
Constantly monitor, change, tweak to increase conversion
Private and Confidential
15
An Example
Result set for searches for packages in Macau shows 6 packages
No. 1 option is clicked in 4% of cases and rarely purchased
No. 6 option is clicked 35% and purchased multiple times daily
Consider why option 1 is lagging behind and if no proper reason replace with option 6 and put a new package in place of option 6
Private and Confidential
16
Start Selling ….
Dynamic holiday packages
Pre-configured holiday packages (static)
Accommodation hotels, apartments, villas, etc.
Transfers Combined / Individual
Destination activities Sightseeing tours, museum tickets, etc.
Car hire
Private and Confidential
17
Non-Air Product Sales….
Act and think like an OTA!
Expand your marketing department
Start product contracting suppliers and/or individual products
Guarantee quality of product in order to avoid brand damage
Expand customer support
Think and act as a retailer
Personalise product offerings e.g., someone searching for a flight to Hong Kong
should get Hong Kong promotions on the results page
Private and Confidential
18
Private and Confidential
19Technology
Platform
Supply Strategy
Call Centre IntegrationFulfilment
E-Retail / Merchandisin
g
CRACKING THE CODE ON SALES OF NON-AIR TRAVEL PRODUCT
23 JANUARY 2014
Manu MenonManaging Director, Malaysia
CONTENT | AIRLINES INDUSTRY | 23 JAN 2014
• INTRODUCTION
• MERCHANDISING ONLINE
• PERSONALIZATION
• VISUAL APPEAL
• CONCLUSION
CONTENT
INTRODUCTION
• The Internet has changed how airlines distribute their products and services.
• The web has provided airlines an enhanced degree of direct customer interaction, but to truly meet traveler requirements they need to expand their offering to become full-fledged online travel retailers.
• Merchandising of ancillary products and services is an increasingly common strategy to overcome the current challenges.
INTRODUCTION| AIRLINES INDUSTRY | 23 JAN 2014
INTRODUCTIONDEMAND ONLINE
• The airline industry, which pioneered loyalty program over 30years ago, is struggling with traveler’s changing needs before, during and after airline travel.
• Low-priced tickets and the lure of free travel via accumulated loyalty program activity is no longer the primary reason for passenger to engage.
• Customers challenging airlines to think more like retailers and less like simple means of transportation for the purpose of a leisure or business trip.
INTRODUCTION| AIRLINES INDUSTRY | 23 JAN 2014
MERCHANDISING ONLINE NON-AIR TRAVEL PRODUCTTHE KEY CONCEPTS
MERCHANDISING ONLINE | AIRLINES INDUSTRY | 23 JAN 2014
Positive User Experience
Increased Conversion
MERCHANDISING ONLINE NON-AIR TRAVEL PRODUCTTHE KEY CONCEPTS
MERCHANDISING ONLINE | AIRLINES INDUSTRY | 23 JAN 2014
Positive User Experience
Visual AppealPersonalisation
SPEAK TO ME AND CATER TO MY NEEDS
PERSONALISATION | AIRLINES INDUSTRY | 23 JAN 2014
PERSONALISATION
SPEAK TO ME AND CATER TO MY NEEDS
Give customer what they need, when they need it.
• Personalisation of the homepage and booking flow is equally vital.
• Offer local language options and customisable landing pages for visitors from different countries.
• During the booking process, offer ancillary products at the right time that are based on their past behaviour sets.
PERSONALISATION
Destination Hotel Star Rating Month More Details
Venice Centrale Hotel 3Stars February •Images•Videos•TripAdvisor•Price
Duty free shopping online
Transfer
Booking
PERSONALISATION | AIRLINES INDUSTRY | 23 JAN 2014
GRAB MY ATTENTION AND YOU GET MY DOLLARS
VISUAL APPEAL
VISUAL APPEAL | AIRLINES INDUSTRY | 23 JAN 2014
Inspire customer with prominent package merchandising.
• Visual appeal is necessary for the homepage as well as the booking flow.
• On the homepage, strong imagery and creative copy inspire users to purchase non-air products like hotel packages.
• During the booking process use of images can entice customers to upgrade to a higher value package or add other products/services to their booking.
GRAB MY ATTENTION AND YOU GET MY DOLLARS
VISUAL APPEAL
VISUAL APPEAL | AIRLINES INDUSTRY | 23 JAN 2014
IN CLOSINGTHE KEY CONCEPTS
CONCLUSION | AIRLINES INDUSTRY | 23 JAN 2014
Positive User Experience
Increased Conversion
Personalisation
Visual Appeal
EFFECTIVE TIPS
3. Using Graphical User Interface
• Increase customer satisfaction by streamlining check in and reservation function for reduced wait time and providing passengers a more personalized travel experience.
• Reduce cost with advanced error checking features and correction prompts which minimize human input error and provide quality control during the reservation process, eliminating time and effort to re-work reservation.
• Deploy to user desktops easily with minimal disruption or system expertise required
EFFECTIVE ONLINE MERCHANDISING | AIRLINES INDUSTRY | 23 JAN 2014
EFFECTIVE ONLINE MERCHANDISING
Page 34
CRACKING THE CODE ON SALES OF NON-AIR TRAVEL PRODUCT
23 Jan 2014
Prepared by
Lawrence Chai
VP, Commercial Systems
Page 35
• Competitive Landscape
• The Search of New Revenue Streams
• Challenges Faced by Full Service Carrier
• The Journey of Merchandizing
(Hotel & Tour Packages)
AGENDA
Page 36
Competitive Landscape
Fuel Cost Operating Cost
Seats CapacitySeats Price
1
Page 37
Competitive Landscape
Fuel Cost Operating Cost
Seats CapacitySeats Price
1
PROFITABILITY
Page 38
The Search of New Revenue Streams
Seats
?
Travel Insurance Baggage
?
LoyaltyPrograms
? Meals
Upgrades
Page 39
Challenges Faced
Bundled?
Unbundled?
Systems?Integrations?
Distributions?Service Delivery?
ChangeManagement?
Branding?
Full Service Carrier?
Page 40
The Journey of Merchandizing
Page 41
The Journey of Merchandizing
People
Process
Technology
People Factors• Small is Big• Airline Team + Non-Airline Team• Developing New Competencies• Team Work• Internet Savvy
Page 42
The Journey of Merchandizing
People
Process
Technology
Process• Inventory Sourcing
(Direct vs Wholesales)• Integrated Work Streams• Ensuring Quality• Dealing with Volumes• Quick, Quicker, Fast, Faster
Page 43
The Journey of Merchandizing
People
Process
Technology
Technology• Lower Starting Cost• Business & Market Driven• Industry-Practise Ready• Scalable and Reliable• I Want It YESTERDAY
Page 44
Summary
Page 45
Thank You
Thank you!
Send your questions and comments to [email protected]
Replay and presentation of webinar will be avaialble on www.tnooz.com
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